The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following:

◉During the year the company purchased available-for-sale securities.
◉At year end, the fair value of the investment portfolio was $2,100 more than cost.
◉The balance of Retained Earnings was $83,000 on January 1.
◉Dobson Corporation paid $9,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

Question

The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following:

◉During the year the company purchased available-for-sale securities.
◉At year end, the fair value of the investment portfolio was $2,100 more than cost. 
◉The balance of Retained Earnings was $83,000 on January 1.
◉Dobson Corporation paid $9,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

Quizplus · Accepted Answer

The Answer of The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following:

◉During the year the company purchased available-for-sale securities.
◉At year end, the fair value of the investment portfolio was $2,100 more than cost. 
◉The balance of Retained Earnings was $83,000 on January 1.
◉Dobson Corporation paid $9,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

The Income Statement for Dodson Corporation Reported Net Income of $22,400